• Market Stories
    • EN
Share
slider
17.05.2021

Emerging Markets Charts & Views - Navigate the cyclical recovery and ride the long-term opportunities in energy transition and Asia

Published 

17 May, 2021

> 10 minutes
17.05.2021
Emerging Markets Charts & Views - Navigate the cyclical recovery and ride the long-term opportunities in energy transition and Asia
Published 

17 May, 2021

> 10 minutes

ABSTRACT


Ride long-term opportunities with eye on green transition

The global economy should rebound strongly this year from its worst economic slump since the 1930s. However, the growth pattern is expected to be uneven across advanced and emerging economies, hinging critically on the virus cycle and the success of vaccine campaigns. Implementation of vaccine programmes is proving quick and effective across advanced economies. Emerging countries are facing structural bottlenecks though. On financial markets, the massive US fiscal stimulus has pushed up inflation expectations amid higher growth projections, steepening the yield curve and strengthening the dollar. More generally, advanced economies have been leading on the fiscal front and divergent DM vs EM paths will remain in place, narrowing the EM-DM growth gap. All in all, emerging economies will face some key challenges this year, though their fundamentals are better positioned than in 2013:

  • They are currently less dependent on easy dollar funding, thanks to improved current account positioning;
  • Portfolio flows have proved resilient; and
  • The search-for-yield drive among investors has extended the global demand for emerging assets.

Among emerging economies, China stands out for its ability to contain the virus effectively and recover quickly, leading the emerging rebound. As such, Asia – particularly China – looks set to become a core component of global portfolios. In order to ride any opportunity arising from such a scenario, investors will need to stay active and flexible, embracing a long-term perspective to take advantage of new opportunities. In this regard, China’s sovereign local debt offers good value in terms of yield and diversification while opportunities could arise in segments such as green bonds, where issuance has been rising strongly across emerging economies. The broad emerging equity outlook remains constructive and frontier markets offer a long-term growth story.

To find out more, download the full paper

Discover Emerging Markets


This website is solely for informational purposes.
 
This website does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation of any security or any other product or service. Any securities, products, or services referenced may not be registered for sale with the relevant authority in your jurisdiction and may not be regulated or supervised by any governmental or similar authority in your jurisdiction.
 
Furthermore, nothing in this website is intended to provide tax, legal, or investment advice and nothing in this website should be construed as a recommendation to buy, sell, or hold any investment or security or to engage in any investment strategy or transaction. There is no guarantee that any targeted performance or forecast will be achieved.

Get in touch with us

Our online help service is available to answer your question.

My personal information

If you have a question about our company or one of our products, please complete the form to get in touch. Please do not mention your account numbers or critical data in this form.

Civility*
CAPTCHA This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.

(*) Required fields
All our job offers (Permanent and temporary position, Internship, Apprenticeship or VIE) are available on our dedicated website: https://jobs.amundi.com.

Register and apply directly online.

Amundi on Twitter